Posted by bluefun > 2015-05-04 20:19 | Report Abuse

KC， thanks for your sharing~ When I see the title of your article, I will click the link and read, its helpful for a newbie like me to learn and study

Nice sharing, keep it up :)

Posted by NOBY > 2015-05-05 17:24 | Report Abuse

Buy and hold strategy is sometimes the best even though I may be speaking based on hind sight. Sometimes moving around too much, keep searching for new opportunity, constantly analyzing, reduces the chances of out-performance. Simply sticking to this portfolio since 2013 would have yielded extraordinary returns (with minimal effort) despite the fact that there were many other candidates that also qualify as cheap and good between then and now.

Posted by NOBY > 2015-05-05 17:51 | Report Abuse

ks55, thanks. I m not bullish on property sector right now. I do own some Plenitude which is a huge paper loss right now. Yes, there are a lot of undervalued property companies now cause market is discounting the future earnings.

Posted by NOBY > 2015-05-05 19:21 | Report Abuse

ks55. Wise words. A lot to learn from you.

Posted by truthseeker1 > 2015-05-06 04:51 | Report Abuse

Base on this blog one should buy Prestariang? No wonder someone trap buying Plenitude.

Posted by kcchongnz > 2015-05-06 05:52 | Report Abuse

Posted by truthseeker1 > May 6, 2015 04:51 AM | Report Abuse
Base on this blog one should buy Prestariang? No wonder someone trap buying Plenitude.


Yeah, shouldn't you buy when the portfolio was put up on 21st January 2013 when its adjusted price was 48 sen? You would have made 421% in just two years like I did.

As whether you should buy now, may be you can advise the people here, why buy, and why not. After all you are a truthseeker, and someone seeking the truth and nothing but the truth all the time, aren't you. no.1 truthseeker some more. No, your advice is not for me.

As for Plenitude. Not bad return what. The return was 36.3% in two years, as compared to the 16.4% of the broad market. What is the problem? Can tell us your reasoning ah?

Posted by Ny036 > 2015-05-06 09:49 | Report Abuse

DJ seem no direction up or down. Maybe waiting clue of interst rate hike.beurope down. China bull market over? Malaysia politic problem? Will there market crash soon? All this factor also will the determine entry time n price beside company performance n foundation.

Posted by apini > 2015-05-06 10:29 | Report Abuse

follow kcchong strategy to invest, high roic, low evm and q ratio >1, is safe and simple. how much is your return is not you decide but god decide.
with this tool you can't win, then you are not deserved for big wealth, but you still can tumpang on other people's luck to make small money

Posted by apini > 2015-05-06 10:37 | Report Abuse

thank you mr kcchong,

I follow your strategy, I make money

but

I know luck is still an important ingredient in all investment

so

be generous to share your profit and you will get more in return

that's why you can see most of the Muslim countries are wealthy with oil and other natural resources because they pay zakat

Posted by kcchongnz > 2015-05-06 15:59 | Report Abuse

Posted by Ny036 > May 6, 2015 09:49 AM | Report Abuse
DJ seem no direction up or down. Maybe waiting clue of interst rate hike.beurope down. China bull market over? Malaysia politic problem? Will there market crash soon? All this factor also will the determine entry time n price beside company performance n foundation.



“As an investor you want to spend very little time on forecasting the weather (that is, what the Fed will do with interest rates next month or the rate of growth of the economy),” Katsenelson

Posted by apini > 2015-05-06 17:50 | Report Abuse

we just do our job, invest in the best way we can, if it wants to rain, let it rains lah...

Posted by apini > 2015-05-06 18:03 | Report Abuse

RIGHT I win big , WRONG I won't die

good day makan nasi, bad day makan ubi

I tell you frankly, if it wants to rain, no one can stop, no one can escape.

but if we put our money in a right place, after the rain, it is still there.

Posted by kcchongnz > 2015-05-06 20:00 | Report Abuse

Another good article explaining what value investing is, and why it should work in the link below.

http://klse.i3investor.com/blogs/kianweiaritcles/76070.jsp

Posted by citychew_1886 > 2015-10-03 10:45 | Report Abuse

Hi KC ,
as you said "Quantitatively, the requirement of stable and consistent earnings and cash flow from operations and free cash flow, a healthy balance sheet stay. And the difference is, instead of using return on equity (ROE) as a measure of a good company, I prefer the return on invested capital (ROIC). For cheapness, I use EBIT multiple, instead of the price-to-earnings ratio. "

But how about if a company with high debt ? does the ROIC alone still apply to such high debt company ? or you still need to add in (EBIT multiple = Enterprise Value / EBIT) to make it work better ?

Posted by kcchongnz > 2015-10-03 13:21 | Report Abuse

Posted by citychew_1886 > Oct 3, 2015 10:45 AM | Report Abuse
Hi KC ,
as you said "Quantitatively, the requirement of stable and consistent earnings and cash flow from operations and free cash flow, a healthy balance sheet stay. And the difference is, instead of using return on equity (ROE) as a measure of a good company, I prefer the return on invested capital (ROIC). For cheapness, I use EBIT multiple, instead of the price-to-earnings ratio. "

But how about if a company with high debt ? does the ROIC alone still apply to such high debt company ? or you still need to add in (EBIT multiple = Enterprise Value / EBIT) to make it work better ?


ROIC, or return on invested capital measures the "goodness" of a company, the whole firm, unlike ROE which is just for the equity shareholders. Invested capital includes all capitals put in by the shareholders as well as debt holders and lenders. Hence ROIC has taken care of all capitals, whether it is high debt or low debt.

The above only measure "goodness". A good company is not necessary a good investment. Hence we have to look at if it is cheap enough to invest, even it is good. EV measures all market values including equity shareholders, debt holders, minority interest, but less of non-operating assets. So it is the price of all the stakeholders. Same thing for EBIT. it is the earnings of the whole firm. Hence all these numbers are in consistent with each other. Yes, you should also consider the price in term of EV/Ebit, similar to P/E, but for the whole firm.

Posted by citychew_1886 > 2015-10-03 15:57 | Report Abuse

Hi KC ,
thanks for the reply.
let me give an example here .
let say company A have total invested capital of rm1000 ,and the EBIT is rm200 ,so the ROIC is 20% . ( EBIT/total invested capital) and company A is zero debt . but company B have the same ROIC as company A but company B have rm500 debt in the balance sheet.so are they still have the same "goodness" ?

Posted by Probability > 2015-10-03 16:06 | Report Abuse

Simply sibuk a bit... :)

I think they have the same 'goodness'.

But, the interesting question would be how Price you should pay for
each shares considering its Book Value per share.

i.e, how to justify P/B for A given a value of P/B of B given by market?

(As you know the Book Value of A is double than B for above scenario).

Posted by kcchongnz > 2015-10-03 17:02 | Report Abuse

Posted by citychew_1886 > Oct 3, 2015 03:57 PM | Report Abuse

Hi KC ,
thanks for the reply.
let me give an example here .
let say company A have total invested capital of rm1000 ,and the EBIT is rm200 ,so the ROIC is 20% . ( EBIT/total invested capital) and company A is zero debt . but company B have the same ROIC as company A but company B have rm500 debt in the balance sheet.so are they still have the same "goodness" ?


Thanks Probability for the clarification.

Same "goodness" but is the "cheapness" the same? Remember, good company doesn't mean good investment and vice versa.

So to determine which is cheaper, you should read this article.

http://klse.i3investor.com/blogs/kcchongnz/49016.jsp

This article is one of the least popular article of mine in i3investor, but one of the most important, in my opinion. So many people talk about the simplistic PE ratio. You hardly even read anything from professional analysts talk about enterprise value.

Posted by slater > 2015-10-07 14:14 | Report Abuse

Hi KC Chong,

Good Evening !

I would like to ask for your valuable advice regarding 9822 SAM

All their contracts to manufacture plane parts is in USD

What if our ringgit stabilize on next year will it make the company profit drop or turn into losses ?

Thank You

Posted by kcchongnz > 2015-10-07 15:54 | Report Abuse

Posted by slater > Oct 7, 2015 02:14 PM | Report Abuse
Hi KC Chong,
Good Evening !
I would like to ask for your valuable advice regarding 9822 SAM
All their contracts to manufacture plane parts is in USD
What if our ringgit stabilize on next year will it make the company profit drop or turn into losses ?
Thank You

Slater, maybe you can tell me if Ringgit is going to go up, down or remain the same, when will it happen, and how much does it affect SAM's bottom line, if it goes up, down, or stabilized.

Posted by slater > 2015-10-20 14:26 | Report Abuse

Dear KC,

Good Evening !

Would like to ask for your latest advice what is your latest review on latitude

Any possible positive catalyst once they release their annual report on next month ?

Their previous quarter results net profit 79 million plus already surpass last year profit 60 million plus

7006 LATITUDE TREE HOLDINGS BERHAD

Thank You

Posted by paperplane2 > 2015-10-20 14:57 | Report Abuse

anyone can calculate latest return to date? To see if this method works even during down time now.

Posted by kcchongnz > 2015-10-20 16:07 | Report Abuse

Posted by slater > Oct 20, 2015 02:26 PM | Report Abuse
Dear KC,
Good Evening !
Would like to ask for your latest advice what is your latest review on latitude
Any possible positive catalyst once they release their annual report on next month ?
Their previous quarter results net profit 79 million plus already surpass last year profit 60 million plus
7006 LATITUDE TREE HOLDINGS BERHAD
Thank You

Slater,

I did write a number of articles about Latitude to share my view, that it is a good company, and was at good price to buy. However, I am no analyst, and I have no insider information of how much they are going to earn, what the share price will be, and yes no ability to forecast its future earnings and cash flows etc.

But I can give my opinion here. A good company may be good to still hold it but may not be a good buy if the price has risen too much. Trees don't go to sky.

Whether it is still a good price to buy you have to look at its price relative to its earnings, compare to its historical PE ratio, etc.

My latest article in i3investor can be found here.

http://klse.i3investor.com/blogs/kcchongnz/80034.jsp

Posted by slater > 2015-10-29 17:52 | Report Abuse

Dear KC,

Good Evening !

Companies that do share buy back has confidence in their own business

Will the share buy back increase the EPS & NTA ?

What is the good and bad thing about share buy back ?

Posted by paperplane2 > 2015-10-29 18:21 | Report Abuse

Buy low sell high, who don't know mother is a lady

Posted by stockraider > 2015-10-29 18:24 | Report Abuse

Paperlane,

Sound easy !!

But what is low ?
What is high ?

That is a question mark ?

Need to assess this carefully bcos this is where success and failure is determine loh....!!

Posted by kcchongnz > 2015-10-29 18:25 | Report Abuse

Posted by slater > Oct 29, 2015 05:52 PM | Report Abuse

Dear KC,

Good Evening !

Companies that do share buy back has confidence in their own business

Will the share buy back increase the EPS & NTA ?

What is the good and bad thing about share buy back ?



Generally yes, but not all the time. I have seen company buying back shares but the major shareholders sell. Something is not right.

If company buy back shares when they are very cheap is good, otherwise no. Sometimes because the management may have a lot of shares from ESOS, they want to jack up the share price to sell. It is very common, I think.

Share buyback will increase EPS, and NTA of outstanding shares in the market. if the bought back shares are redistributed as ESOS, or sold to the market, then there is no effect.

Posted by paperplane2 > 2015-10-29 18:28 | Report Abuse

Yes, low can be lower, high can be higher

Posted by paperplane2 > 2015-10-29 18:31 | Report Abuse

I always dislike to first look into book!
First thing to look at always is the mgt and directors!
Look who are them, how they practice their biz and how they mgt it.

Posted by slater > 2015-10-29 20:58 | Report Abuse

Kc chong and others what do you all think about latitude share buy back proposal ?